EX-99.(D)(III) 6 f92233exv99wxdyxiiiy.txt EXHIBIT (D)(III) Exhibit (d)(iii) October 30, 2003 Randall W. Merk President and Chief Executive Officer - Schwab Investments 101 Montgomery Street San Francisco, CA 94104 Re: Schwab Investments Dear Mr. Merk: As described in the registration statement of certain funds filed with the Securities and Exchange Commission, this letter will confirm our agreement to limit each fund's total operating expenses (excluding interest, taxes and certain non-routine expenses) as follows:
FUND NEW EXPENSE LIMITATION EXPIRATION ----------------- ----------------- Schwab Short-Term Bond Market Fund 55 bp 11/15/04 ----------------- ----------------- Schwab Total Bond Market Fund 55 bp 11/15/04 ----------------- ----------------- Schwab Short/Intermediate Tax-Free Bond Fund 65 bp 11/15/04 ----------------- ----------------- Schwab Long-Term Tax-Free Bond Fund 65 bp 11/15/04 ----------------- ----------------- Schwab California Short/Intermediate Tax-Free 65 bp 11/15/04 Bond Fund ----------------- ----------------- Schwab GNMA Fund ----------------- ----------------- Investor Shares 74 bp 11/15/04 ----------------- ----------------- Select Shares 55 bp 11/15/04 ----------------- -----------------
Sincerely, /s/ Stephen B. Ward /s/ Kim Laughton ---------------------------- ------------------------------- Stephen B. Ward, Kim Laughton Senior Vice President Vice President and Chief Investment Officer, AMPS Development & Distribution Charles Schwab Investment Management, Inc.